Stars Arena CEO Resigns Following Smart Contract Exploit
Recently, Stars Arena, a decentralized social finance (SocialFi) application, experienced a major smart contract exploit. As a result, the platform’s CEO, Chill Pill, has resigned from their position. The total value locked (TVL) of the protocol has also decreased significantly from nearly $3 million to just above $300,000.
Unknown Stars Arena CEO Steps Down
Stars Arena announced the resignation of their CEO on X. The team is now focused on rebuilding trust within the community. Chill Pill confirmed the news via a tweet, but no reasons were given for the departure by either party.
As of today, Chill Pill has stepped down from his role as CEO.
We will continue to take significant steps towards rebuilding trust with our community.
— Stars Arena (@starsarenacom) October 29, 2023
Many members of the crypto community on X were surprised to learn that Stars Arena had a CEO, as the project had not been transparent about its team. Some also noted that this was one of the fastest resignations in the space.
Major TVL Decrease After Hack
Stars Arena’s first hack cost them $2000, but they assured users that they had resolved the vulnerability. However, shortly after, they experienced a second hack resulting in a larger theft. The attackers drained the platform’s TVL, stealing nearly $3 million and leaving only $0.5.
Avalanche CEO Gün Sirer expressed confidence that Stars Arena would recover quickly from the incident. The platform later claimed to have received funding to cover the losses.
Following the hack, the perpetrator contacted Stars Arena and returned 90% of the stolen funds in exchange for a 10% bounty and an additional 1,000 AVAX lost in a bridge.
Currently, Stars Arena’s TVL stands at $310,468, representing an almost 90% drop from its value before the second exploit.
Hot Take: Stars Arena Faces CEO Resignation and TVL Plummet After Hack
Stars Arena, a decentralized social finance application, has been dealing with the aftermath of a major smart contract exploit. The platform’s CEO has resigned, leaving the team focused on rebuilding trust within the community. This comes as the protocol’s total value locked (TVL) has plummeted from nearly $3 million to just above $300,000. The resignation of the CEO took many by surprise, as Stars Arena had not been transparent about its team. Additionally, the platform suffered two hacks, resulting in significant losses. While efforts are being made to recover stolen funds and rebuild trust, Stars Arena faces an uphill battle in regaining its previous standing in the crypto space.
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